- (1.) HEARD learned counsel for the appellant.
(2.) THE proceedings for block asst. yrs. 1988-89 to 1997-98 were initiated against the respondents as a result of search conducted at the residence of assessee on 24th March, 1997 under Section 132 of the IT Act, 1961. In response to the notice to file return, the assessee filed a return of the block period by showing the income for asst. yrs. 1988-89 to 1997-98 as per the income -tax return for the respective assessment years and undisclosed income in the sum of Rs. 41,220 for 20 days for the asst. yr. 1998-99 corresponding to the period from 1st April, 1996 to 24th March, 1997. Undisclosed income was referable to the value of 7 kg. of silver utensils. The AO found that the assessee is a partner of M/s Balaji Investors and besides having agricultural income of the agricultural land at Atun Road, Bhilwara the assessee has half share in a farm house cum swimming pool which was constructed by the firm during the block assessment period. During the financial year 1996 -97 the assessee has also shown long -term capital gain from sale of shares amounting to Rs. 10,41,673. The assessee owns a residential house at B -37, Shastri Nagar, Bhilwara which had also been constructed during the block assessment period.
(3.) THIS appeal is about additions made on account of about three items only.;